On February 7, 2007 the Nasdaq stock market has approved the request of DayStar Technologies Inc., for an exemption allowing it to make a new stock issue without shareholders’ voting. The stock issue is part of the restructuring of a $15 million convertible note, which had been originally held by Castlerigg Master Investments Ltd., a company registered in the British Virgin Islands, and a private placement of common stock.
The note held by the BVI-based Castlerigg was sold to LC Capital Master Fund Ltd., registered on the Cayman Islands. Under the terms of this deal, LC Capital agreed that DayStar Technologies would defer payments of interest and principal on the note for 30 days. Both companies have also agreed to a formula under which the note will convert to stock.
DayStar Technologies will also issue 825,181 shares of common stock to the BVI company, to pay for outstanding principal and interest. DayStar also agreed to issue a class A warrant to Castlerigg , to purchase an additional 317,394 shares of the company’s common stock at $2 per share.
DayStar is also going to sell 2,500,000 shares of Common Stock to an investment group that includes local investor Michael Dura, and four New York City groups. DayStar is seeking to raise $30 million from institutional investors to place this amount into a new manufacturing plant in the Saratoga Technology and Energy Park in Malta, N.Y.